The Federal Reserve Bank has banned a Miami banker accused of investing client funds into Bernard Madoff’s Ponzi scheme from working at a bank or financial institution.
Antonio Garcia-Adanez is a former client relationship manager at Standard Chartered Bank International, the Miami foreign office of a London bank.
The Federal Reserve order stated that Garcia-Adanez allegedly engaged in violations of law, unsafe and unsound banking practices, and breaches of fiduciary duty that cause substantial loses to the bank. While it did not detail the specific allegation, it said he manipulated account statements of bank clients to misrepresent their investments.
Garcia-Adanez consented to the Federal Reserve prohibitions.
Two pending federal lawsuits from investors filed in federal court in Miami accuse Garcia-Adanez of advising clients to invest in a feeder fund linked to Madoff’s $7 billion Ponzi scheme.
The lawsuit alleges, among other things, that Garcia-Adanez and the bank “did little, if any, due diligence of the fraudulent investments, ignored many red flags and failed to meet their fiduciary duty to investors.”
Click here to read one of the lawsuits.
Standard Chartered Bank is also named as the sole defendant in a separate federal class action lawsuit filed by other Madoff investors.
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Tags: Fund, Miami Banker